Indian benchmarks set to open lower on US fiscal jitters, rising Treasury yields

 Indian benchmarks set to open lower on US fiscal jitters, rising Treasury yields

Refinitiv1 min read

NIFTY

+0.52%

INDUSINDBK

−1.57%

SENSEX

+0.51%

India's benchmark indexes are likely to open marginally lower on Thursday as U.S. fiscal worries and higher Treasury yields sapped global investor sentiment.

Gift Nifty futures (GIFc1) were trading at 24,757 as of 8:21 a.m. IST, indicating that the Nifty 50 

NIFTY

 will open below its previous close of 24,813.45.

Most Asian markets fell in early trade, tracking overnight losses on Wall Street, as yields on 20-year U.S. government debt rose to their highest since November 2023.

Investor sentiment has been fragile since Moody's downgraded the United States' credit rating last Friday amid concerns about the country's ballooning debt pile.

Long-dated U.S. Treasury yields spiked on Wednesday on jitters over the debt burden, with Congress debating a tax and spending bill that could worsen the fiscal outlook.

The bill was approved by the U.S. House of Representatives Rules Committee, setting the stage for a vote on the House floor in the coming hours.

Rising Treasury yields tend to make bonds more attractive to foreign investors, driving out capital from stocks in emerging markets such as India.

Despite this, foreign portfolio investors bought Indian shares worth 22 billion rupees ($257.3 million) on Wednesday, as per provisional data, a day after they logged their biggest single-day selling in nearly three months.

Meanwhile, India and the United States may finalize first phase of the trade deal before July 8, with India seeking exemption from President Donald Trump's 26% reciprocal tariffs, according to multiple news reports that cited news agency Press Trust of India.

Among stocks, IndusInd Bank 

INDUSINDBK

 will be in focus after it posted its biggest-ever quarterly loss and said it suspects some employees had engaged in fraud that led to accounting lapses that the private lender had disclosed earlier.

InterGlobe Aviation reported a 62% jump in its fourth-quarter profit, helped by steady demand for domestic air travel. *SHREEJI FINANCE & INVESTMENT*